CoreLogic Announces New Custom Automated Valuation Model Cascades Service

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October 26, 2010, Santa Ana, Calif. –

Client-Specific Offerings Will Follow Best Practices Cited in New Industry Research Study By New York University Researchers

CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services, today announced an improved service that will create custom automated valuation model (AVM) cascades for clients that want to establish their own parameters for models, accuracy, coverage and data sufficiency. This CoreLogic service builds on 10 years of experience in cascade development and will incorporate many of the best practices recommended by a new study on the subject, written by noted New York University (NYU) researchers: Andrew Caplin, professor of Economics and Roy Lowrance, senior research scientist.

The custom AVM cascades will give clients the option of selecting from the company’s patented, market-leading AVMs or selecting and blending other premium AVM models. The cascades will be created using conditional logic that iteratively builds cascades that take into account the interplay of models in a production environment. This approach produces stable, defensible cascades. Because CoreLogic databases cover more than 98 percent of all domestic real estate transactions, comprehensive blind testing can be conducted daily, using all recorded sales from that day.

“Our clients, their regulators and the new Dodd-Frank Act all call for rigorous management of AVM performance,” said Susan Allen, vice president, Collateral Solutions, at CoreLogic. “Our new cascade service blends our patented AVMs with other models, the industry’s most comprehensive property database, comprehensive blind testing, and iterative cascade creation methodology to create a transparent, high performance cascade.”

Many of the best practices that CoreLogic uses were recently endorsed by a new study, “The AVM Cascade Industry,” which was released this fall by Advanced Valuation Analytics Corporation, New York, an industry research firm. The report, which was funded by CoreLogic, examines the “technical underpinnings” of available cascades and provides a guide for users as to which technique is best suited to particular valuation tasks. Among the issues raised in the study was the amount of information available from cascade developers delineating which products are bundled into their cascades and how the cascades order the AVMs that are selected. “One of the reasons for focusing on transparency,” the authors wrote, “is that, with notable exceptions, the information available to end users on cascade valuation model (CVM) construction is inadequate, and performance assessment can be opaque.”

The report also noted: “It turns out different cascade producers use distinct approaches to order available AVMs from best to worst. Unfortunately this is not widely appreciated, which both makes it hard for cascade users to identify the cascade that is best suited to their particular valuation challenge and lowers incentives for technical advance.”

A copy of the study is available at: http://cess.nyu.edu/caplin/wp-content/uploads/2010/02/Cascade-Paper-October-Final.pdf.

The CoreLogic approach to cascade development has always been to provide significant details on both the models used in its cascades, including their strengths and weaknesses, and the methodology used to rank the order of the AVMs.

CoreLogic has been building property valuation and collateral risk management tools for more than 20 years. During that time, the company has stayed at the forefront of the market by continually refining the solutions it delivers, helping lenders, mortgage servicers, and investors understand property values and property-related risk. CoreLogic AVMs draw from the most current, complete and relevant public record data available for the US.. CoreLogic’s market-specific data covers 98 percent of all U.S. ZIP codes and 3,100 counties in all 50 states and the District of Columbia, representing 99 percent of the U.S. population, 97 percent of all properties (145 million). In addition to the public record data, the company’s models also have supplemental data on properties currently for sale, the characteristics of those properties, and current asking prices. Finally, CoreLogic refreshes its AVM databases daily, based on current public record data available to CoreLogic and other data sources.

About Advanced Valuation Analytics Corporation
Advanced Valuation Analytics Corporation (AVAC) provides research and modeling into topics concerning real estate economics, property valuations, and housing policies. Founded by New York University Professor of Economics, Andrew Caplin, in combination with other economists and computer scientists at NYU and real estate professionals, AVAC applies the extensive knowledge of leading researchers to issues important to the mortgage industry. For more information on Professor Andrew Caplin, visit http://cess.nyu.edu/caplin/

About CoreLogic
CoreLogic (NYSE: CLGX) is a leading provider of consumer, financial and property information, analytics and services to business and government. The company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built the largest U.S. real estate, mortgage application, fraud, and loan performance databases and is a recognized leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. Formerly the information solutions group of The First American Corporation, CoreLogic began trading under the ticker CLGX on the NYSE on June 2, 2010. The company, headquartered in Santa Ana, Calif., has more than 10,000 employees globally with 2009 revenues of $2 billion. For more information visit www.corelogic.com.